FAQ’s

We currently offer both fixed and adjustable rates for conventional and jumbo loans. We also offer FHA loans for homebuyers.

We finance all kinds of properties including:

• Single-family homes
• Multi-family homes
• Townhouses
• Condominiums
• Non-Owner occupied properties
• Investment properties
• Medical Facilities
• Shopping Centers

If you are looking for a loan for a purpose not mentioned above, let us know. We might be able to assist you.

Great question! At Uber Lending Group, our sole mission is to find you the best rate possible from our roster of over 100 lenders. We believe that if we make any customer happy, they will in turn refer us to another customer. There’s no better advertising than word-of-mouth advertising.

All FHA loans must be used to fund the purchase of a one or two-to-four-unit primary residence only. To qualify, borrowers must have a credit score of at least 620 and be able to make a minimum down payment of 3.5%. If there is a non-occupying co-applicant/co-borrower, the minimum down payment is 25%.

Debt to income (DTI) ratios are a measurement of monthly debt compared to monthly income. This ratio gives lenders an understanding of other major financial obligations in a borrower’s life and is used to determine how much a borrower can afford in a monthly mortgage payment compared to other existing debts.

A conforming loan is any type of home loan that meets the mortgage limits set by the Federal Housing Finance Agency (FHFA)—an independent government agency. These limits are based on property size and location and change annually with home prices. Conforming loans also require you to meet Fannie Mae and Freddie Mac lending guidelines. Home loans that fall outside the set limits (non-conforming) are called jumbo loans and tend to come with a few extra hurdles.

A refinance (also known as a refi) is the process of applying for a new home loan to replace an existing home loan. Homeowners generally refinance to change the rate or term of their home loan (rate/term refinance) or to take cash out of the equity that they’ve built (cash-out refinance).

VA loans are home loans with lenient qualifying guidelines and favorable terms for active military service members, veterans, and eligible military spouses. Because VA loans are backed in part by the federal government, lenders and banks are able to offer reduced interest rates.

When you get a rate quote on our site, the monthly payment shown includes the principal and interest of the loan. You will also need to pay taxes and insurance, which vary based on location and other factors.

The annual percentage rate (APR) is your interest rate plus ancillary charges and fees—such as closing costs and discount points- expressed as a yearly rate. By law, a loan’s APR is always expressed as a percentage next to the mortgage interest rate. The APR gives the best indication of the actual total cost of your mortgage.

A loan term is the length of time over which the loan is to be repaid. The most popular type of loan terms is 30, 20, and 15-year term loans.

An adjustable-rate mortgage (ARM) is a loan that offers an initial period of fixed interest that then resets at a specified interval. Typically, you’ll see an ARM expressed as two numbers. For example, a 5/1 ARM has a fixed interest rate for the first 5 years that then adjusts based on market rates every year after that. An ARM tends to have a lower initial interest rate than a fixed-rate mortgage. However, it does come with a certain amount of unpredictability. That’s because when an ARM enters its adjustable period, its interest rate may trend up or down depending on the state of the market.

Basis points (also known as BPs, and pronounced as “bips”) are a unit of measurement. They’re equal to one one-hundredth of one percentage point (0.01%). Basis Points are used to remove any kind of ambiguity when referring to the specifics of an interest rate.

After you lock, we’ll hold your rate for you while we work together on the loan process. This gives you time to complete your application with peace of mind, knowing that your rate and monthly payment won’t change due to market movements.

When you begin the mortgage approval process, your rate can be “locked” for 30 days (or up to 75 days, depending on your loan type), allowing your underwriting process to run its course without subjecting you to rate increases between application and closing. If your loan doesn’t close within the lock period, it is possible to extend your rate lock—but there is a cost associated with doing so. If the delay was due to complications on your end (unresponsiveness, missing documents, etc.), only then will you be responsible for the full amount.

Loan underwriting is a highly collaborative process between lender and borrower, so the best thing you can do to ensure speedy closing is stay up to date on your task list in our online borrower portal. This is your one easy central hub for everything happening with your loan, including an up-to-date list of things needed from you at any given point in the process. These typically include documents we need you to upload, third-party steps you need to arrange (like inspection, appraisal, title etc.), or questions we need you to answer. Checking in on your list daily is the best way to keep things moving.

We also recommend taking a proactive approach with third parties in the process. Follow up soon and often with service providers who are taking care of things like your appraisal, inspection, title, insurance, etc. The more quickly those items get checked off the list, the more quickly your loan can close.

No one said that buying a home would necessarily be cheap. Between the mortgage, the down payment, the closing costs, the property insurance, it can add up quickly.

But not every prospective homeowner is aware of third-party fees. These fees are associated with the wide range of tasks that are involved with buying a home, and are included in the closing costs. These third-party services could range from the appraiser to the home inspector to a credit monitor.

In terms of who pays for third-party fees specifically, that varies from state to state and even county to county. The responsibility for certain fees may also be used as a bargaining chip during the homebuying process.

For example, if the home inspection turns up some things that you would like repaired but you don’t want to delay the close of the sale, you might negotiate to have the seller pay the agent’s commission or some other portion of the fees.

Other fees that the seller may be responsible for are:

• Home warranty premiums
• Owner’s title insurance premiums
• Transfer taxes and recording fees
• Prorated taxes and HOA dues

Great question. Here are the upfront costs to expect when you purchase a home:

• Down payment: This is the portion of the purchase price you agree to cover.
• Third-party fees: These are fees paid to third parties, like appraisal fees, title insurance fees, transfer taxes, if any.. These services are required to get a purchase loan no matter which lender you use and we don’t mark up the prices. 
• Escrow deposit: If you choose to pay for your homeowner’s insurance and taxes as part of your monthly loan payments, you will need to pay an initial deposit so the account can cover future payments. The number of months required will depend on when these items are due for payment relative to your closing date.
• Pre-paid interest: This is a one-time upfront interest payment due at closing. It covers interest from the day of closing through the end of the month.

Loan points (optional): We allow you to get a lower interest rate by paying “points”.

Amortization is the process of paying off the principal and interest on your loan. You may see it expressed as an amortization schedule—essentially an outlook of every payment you need to make until you’ve paid off the balance of the loan in full. To see your mortgage payoff schedule, use our amortization calculator.

Origination fees are the one-time costs you pay to a lender for processing your home loan. These fees may be itemized but it’s just as likely that they’ll be bundled into one ambiguous line item.

When referring to a home loan, the principal is the amount of money borrowed excluding taxes, interest, or homeowners insurance. In other words, it’s what you originally borrowed from your lender when you first took out your home loan. If you borrowed $200,000, then your principal is $200,000.

You can decide whether to pay points up front to buy down your rate, or to take credit and a higher rate. You’ll see these options when you get a rate quote and can change your selection anytime until you lock your rate. If you are not sure which option is best for you, use our mortgage calculator.

You are also responsible for all third-party settlement fees, which can include independent property appraisal, title services, and recording charges, depending on your circumstances.

Your loan estimate, which we will send you within 3 days of submitting your application, will have a breakdown of all fees.

Private mortgage insurance (PMI) is insurance required by lenders when a borrower puts less than 20% down on a conventional loan. It’s meant to protect the lender in the event that the borrower defaults. PMI can be canceled once the borrower has at least 20% equity in the property. The PMI amount is determined by many different factors, similar to your interest rate—including FICO score, loan-to-value ratio, debt-to-income ratio, property type, and occupancy.

We offer two types of letters. The first is a basic pre-approval letter. This letter is based on your stated income and a soft credit pull. We have not reviewed any of your documentation. These letters are great for getting a general sense of what you can afford and can be fine to use in certain markets, where agents and sellers don’t require something more fully vetted.

The second letter is a verified pre-approval letter. You upload financial documents such as pay stubs, tax returns, and bank statements for us to review and we determine the amount of qualifying income and assets we can use based on industry guidelines. This letter is great if you want more certainty about what you can afford and if you are buying in a competitive market where agents and sellers require a more fully vetted pre-approval letter.

Nothing. We will provide you with both a basic and verified pre-approval letter free of charge.

Yes. This helps us determine your exact FICO score and monthly debt obligations so we can be sure you qualify for a loan.

We must verify that you have control over the assets you are planning to use for your down payment. There are some cases when verified assets might be lower than you expect. Here are a few examples:

• If you have large deposits in your bank account from an ineligible source (e.g. cash deposit, undocumented source, unsecured loan such as a credit card advance) we will not be able to give you credit for those funds.
• We are typically only able to use assets from investment and retirement accounts if they are liquidated prior to closing the loan.
• We are only able to use a percentage of any pending property sale values, and not the full amount.
• We only consider assets from business accounts on a case-by-case basis.

If you want additional certainty as to the purchase price you qualify for, we recommend getting a verified pre-approval letter.

After you get pre-approved and select your preferred rate, your application will show you a list of tasks that need to be completed. The first group of tasks is called “Lock your rate”

Once you complete all the tasks in this group, you’ll be able to request a rate lock. If accepted, you’ll have a period of time in which to complete the remaining work, and your interest rate will be guaranteed.

An escrow account is not required for most borrowers. However, having an escrow account usually helps in getting the best rate and maintaining your peace of mind.

If you choose to have an escrow account:

• The annual amount of your property taxes and homeowners insurance will be divided by 12.
• Your monthly mortgage payment will be increased by this amount.
• Your mortgage provider will pay your taxes and insurance for you out of the escrow account.
• Your total payments are the same, and you may get a better rate.

Without an escrow account, you are responsible for paying your tax and insurance bills directly.

Yes, by law, we must keep all personal data of any borrower(s) secure.

A cash reserve (also known as a mortgage reserve) is the “rainy day” savings you’ve set aside for emergencies—such as the loss of a job. Lenders typically require you to have 2 months of mortgage payments on hand in case of emergency.

A gift letter documents money that has been given to you by a family member, spouse, or partner to support your down payment or closing costs. Its purpose is to assure the lender that the gift funds have no expectation of being repaid—otherwise they would be classified as debt and included in your debt to income (DTI) ratio.

Closing is the final step of the homebuying transaction. All outstanding fees listed in the closing disclosure are paid, the escrow funds are cleared to be delivered to the seller, and the buyer and seller sign documents to transfer ownership of the property. The buyer signs the mortgage loan, and the title company registers the title deed to the property in the buyer’s name.

A co-borrower is a spouse whose income and credit history are put on the loan application in addition to the primary borrower. Having a co-borrower is optional on a mortgage loan.

A comparable sale (also known as a “comp”) is a recently sold property in the area with similar features to the home you’re looking to buy. Appraisers use comparable sales to help estimate the fair market value of a home.

A down payment is the amount of cash you pay upfront toward the purchase of a home. It’s often expressed as a percentage of the selling price of a home—typically 5–20% depending on the type of loan. The difference between your down payment and the price of the home is what you finance with a mortgage. Generally, if you put less than 20% “down” on a home, private mortgage insurance (PMI) is required in addition to your monthly payment.

A purchase contract (also known as a contract to purchase real estate) is a legal written agreement between a buyer and seller. Purchase contracts vary from state to state depending on local law. When both the buyer and seller finish negotiating terms and stipulations, they sign the purchase contract and it becomes legally binding—contingent upon the terms in the contract being met. Some states allow real estate agents to draw up purchase contracts but others only allow lawyers to write contracts.

A survey is a drawing of your property that details the location of the lot, property lines, home, and any other structures within its bounds. The purpose of a survey is to confirm land boundaries in the event of a legal dispute. Surveys are typically held by the local county tax collector and are part of the closing costs associated with buying a free-standing home.

Check to see which tax form you use — some examples of tax documents for self-employment income include:

• Schedule C (Sole Proprietorship)
• K-1/Form 1065 (Partnership)
• K-1/Form 1120S (S-Corp)
• Form 1120 (C-Corp)

You can also include income you earn from a W-2 issued by your company. These earnings should be reflected on your business returns, but if we can’t identify them clearly we may ask for copies of your W-2s from the past two years.

You usually need to be self-employed for at least two years, but in rare cases, 12 to 24 months may also be considered. In those cases, your most recent signed federal income tax returns must reflect the receipt of the same (or more) income in a similar field as your new business. We usually cannot use income from a brand-new business because it doesn’t meet our 2-year requirement.

Income documentation for the last 2 years gives us a more accurate assessment of your earnings. We generally take a 24-month average if your income is stable or increasing, and a 12-month average if your income has decreased, but is stabilizing.

Your debt-to-income ratio (DTI) is a measure of your monthly debt compared to your monthly income, calculated by your monthly debt divided by your monthly gross (pre-tax) income. DTI is one of the factors used to determine the affordability of a monthly mortgage payment.

While there are many online resources, The Federal Trade Commission offers information on how you can get one free copy of your credit report every 12 months from each of the three nationwide credit reporting companies. Please visit this link for more info: https://www.ftc.gov/faq/consumer-protection/get-my-free-credit-report

If you think there’s a mistake in your credit score, contact Experian directly at +1 (888) 397-3742.

In many cases, credit lines have unrecognizable labels. If you’ve reviewed and accounted for all your debts and still think a credit line is incorrect, please schedule a call with your Mortgage Expert. We cannot resolve the problem without getting more information from you.

We have to use the lower credit score of you and your co-borrower. If one of you has a low credit score, we often recommend that the person with the higher credit score apply to get the best terms possible. You’ll still be able to put both names on the title. However, both people may need to apply if more funds are needed for their down payment or to improve their debt to income-ratio.

A credit check (also known as a credit inquiry or credit pull) is when a lender looks into your financial history with credit reporting agencies to determine your creditworthiness. Lenders use both “soft” and “hard” credit checks to see if you qualify for a loan. For pre-approval, we issue a soft credit check that does not impact your credit score. Once you actually apply for a mortgage, we issue a hard credit check that can negatively impact your score for a short time.

An appraisal is an opinion of value based on market data from your neighborhood.

Unfortunately, no. When applying for a new mortgage it is always the lender that must order the appraisal report, and we do not accept appraisal transfers from other mortgage transactions.

An appraisal provides an estimate of value. A home inspection comments on the structural soundness of your home and the components within it, such as the furnace and water heater.

No, it will not affect your taxes. The appraiser does not report the appraised value or anything they see in the home (e.g., illegal decks or additions, converted garages, etc.) to the tax assessor.

After you lock your rate, you’ll be asked to pay an appraisal fee which may differ from one company to another. This payment is fully refundable if you withdraw before the appraisal inspection occurs. Because this is a third-party fee, it’s not refundable after the inspection has taken place.

A loan-to-value (LTV) ratio is an equation that lenders use to assess the amount of risk associated with a home loan. LTV is calculated by dividing the total home loan amount by the appraised market value of the home. Typically, if the LTV ratio is higher than 80%, lenders require private mortgage insurance (PMI) to offset the higher risk of default.

No. Uber Lending Group never sends postcards to discuss important matters regarding a mortgage you have closed with us. And we will never share sensitive information (such as a mortgage identification number or account number) on an unsealed postcard.

However, when a borrower closes on a mortgage, regardless of which lender they borrowed from, they may be contacted by companies who obtained the borrower’s information from public sources. Often these solicitations are in the form of a postcard. Occasionally they may use wording to suggest it was sent from your lender. We urge you to not fall for these fake offers.

After your loan closes, you will receive instructions by email and in writing on where to direct your first payment.

In some cases, your first payment will be made directly to the lender. In others, your loan may be transferred to our subservicing partner quickly enough that your first payment will go through them.

Official notification of your payment instructions will come via US mail and should arrive no fewer than 10 calendar days before your payment is due.

A mortgage servicer is responsible for the administrative aspects of your loan, everything from customer service to payment processing and quality assurance.

Yes, borrowers can “buy down” their interest rate (and by extension, their monthly payment) with the purchase of discount points. Typically, 1 point will cost about 1% of the loan amount—so buying a point on a $300,000 loan would cost $3,000.

This is a personal financial decision. As a starting point, it’s helpful to consider how much cash you’re comfortable paying upfront because points mean more money at closing. Then think of that upfront cost in the context of how long you plan to own your home. Securing a lower interest rate will save you money on monthly payments over time, and you can calculate the break-even point to understand how long you’ll need to own the home before that initial investment is offset by those savings.

If your home is damaged or destroyed, a typical homeowners insurance policy will provide you coverage to repair or replace your home and everything in it.

There are 8 different types of homeowners insurance policies available, but the two most common policies cover single-family homes and condos. The specific details of what’s covered can depend on the homeowners insurance policy you select, the type of home you own, and where you live. Many homeowners who live in states where natural disasters are common opt for extra coverage to give them peace of mind.

You can choose to pay for your policy up front or at closing with the rest of your closing costs.

If you pay up front via credit/debit card, your lender will just need to see the receipt of payment along with the evidence of insurance and declarations page.

If you choose to pay at closing with the rest of your mortgage closing costs, your insurance agent will indicate this on your policy and your lender will know to only charge you at closing.

For either of these payment choices, your lender will require that you pay for the entire first year’s premium.

In most states, insurers use credit-based insurance score reports—which is different from your regular credit score—to determine premiums. Insurance companies check credit scores in order to gauge the risk they might undergo because studies have shown that those with lower credit scores are likely to file more claims or have more expensive claims. Insurance companies check credit scores when delivering quotes on a soft pull basis, which is a type of inquiry that will not negatively impact an individual’s credit score. These inquiries will be visible on personal credit reports, but they are not visible to lenders and have zero effect on credit score.

A soft inquiry/soft pull allows a creditor to review a person’s credit report and credit score to get a sense of how well the person is managing their credit. A soft inquiry can occur even when an individual checks their own credit report.

It is a myth that getting an insurance quote will hurt your credit. Even getting several quotes at once does not affect your score.

Flood insurance is special coverage that covers water damage caused by flooding. If your home is found to be located within a flood zone, your lender will likely require you to have a flood insurance policy. Premiums vary depending on how prone the property is to flooding.

Your homeowner’s insurance policy will need to be paid in full by the date you close on your mortgage. 

Alternatively, you can pay the first year’s homeowners insurance premium directly to the insurance company and then provide your Lender with a paid-in-full receipt. In this case, your Lender will need the paid-in-full receipt before closing, as they won’t be able to complete the final review of your loan application without it.

Homeowners’ insurance is not tax-deductible.

However, there is a range of tax-deductible mortgage and homeowner-related expenses such as mortgage interest, property tax, and private mortgage insurance. Learn more about the tax deductions available to homeowners in the more resources section below.

Hazard insurance is part of a homeowners insurance policy; it’s not a separate type of insurance coverage. You need to have a certain level of hazard insurance included in your homeowners insurance policy for your mortgage loan to be approved.

Hazard insurance typically provides coverage for the structure of your home. It doesn’t offer liability coverage for injuries suffered by you or your guests as a result of an accident in your home.

Hazard insurance covers:

• Fire damage
• Hail
• Lightning
• Damage
• Theft
• Vandalism
• Fallen trees
• Vehicles that run into your home
• Explosions

Contact your insurance provider for answers to more specific questions you may have regarding the level of coverage your hazard insurance provides.

At a bare minimum, your homeowner’s insurance should cover your property’s replacement cost. This minimum level of coverage ensures that your insurance meets your lender’s homeowners insurance requirements to approve your mortgage application.

However, most homeowners opt for more insurance coverage to protect their belongings and to provide liability coverage for accidents that may cause injuries to the homeowner or guests on their property.

Yes.  Borrowers can “buy down” their interest rate (and by extension, their monthly payment) with the purchase of discount points. Typically, 1 point will cost about 1% of the loan amount—so buying a point on a $300,000 loan would cost about $3,000—but the exact financial impact of points and credits should be reviewed on your Loan Estimate before closing.

Buying points is a personal financial decision. As a starting point, it’s helpful to consider how much cash you’re comfortable paying upfront because points mean more money at closing. Then think of that upfront cost in the context of how long you plan to own your home. Securing a lower interest rate will save you money on monthly payments over time, and you can calculate the break-even point to understand how long you’ll need to own the home before that initial investment is offset by those savings.

Appreciation is the increase in the value of your home over time. It can be affected by all kinds of events—from property renovations to changes in the housing market.

A lien is a legal claim to an item of the property until an owed debt is paid off. When you take out a home loan, your lender has a lien on your home. This gives them the right to seize your home if you fail to repay your loan.

Fannie Mae is the nickname for the Federal National Mortgage Association—the government-sponsored entity that provides funding to mortgage lenders by buying mortgages and selling the debt to investors. The primary purpose of Fannie Mae is to ensure that there are affordable housing options and programs for homebuyers, sellers, and renters. They do this by setting lending guidelines to ensure that loans are originated fairly and that home loans are not given to those who cannot afford them.

An investment property is a real estate that’s purchased with the exclusive purpose of generating a profit. Unlike a primary residence or a secondary home, an investment property is not something you’d typically own for personal use. More likely, the property would be rented out, sold for a return on investment, or both. Investment properties tend to have the highest interest rates and down payment requirements of all property types.

Foreclosure is the process of repossessing a home after the borrower defaults on their mortgage.

A short sale is when a homeowner sells their home for a price less than the balance of their current mortgage. If a lender agrees to a short sale, the homeowner will typically owe the bank or lender the remaining balance due on their home loan after the sale. If a borrower has had a short sale in the past, there is a 4-year waiting period to qualify for a new mortgage.

A primary residence is a home in which you live for the majority of the year. It could be a free-standing home, a condo, a co-op, it could even be a boat, but you can only have one primary residence. Home loan rates tend to be lower for primary residences, so it’s important that you let your lender know this information in your application. The interest that you pay on a home loan for a primary residence may also be tax-deductible.

A condominium (also known as a condo) is a privately-owned home within a multi-unit development. Each owner has a shared interest in the common areas of the building—such as elevators, garages, gyms, etc.—which are typically maintained through monthly homeowners association (HOA) fees.

A cooperative (also known as a co-op) is a multi-unit development where owners technically don’t “own” their units outright. Instead, owners are allotted shares in a corporation (the building), along with the right to live in one of the units. Shareholders periodically pay fees that cover everything from the door person’s salary to the maintenance of common areas in the building. These operations are handled by a governing board that is also in charge of setting all the building rules and requirements for moving in, as well as screening potential residents.

Yes. Rolling closing costs into your new loan is known as a no-cost refinance and may be a good strategy if your short-term priority is to keep more cash in your pocket. Make sure you understand the overall impact before you decide to do a no-cost refinance.

When you refinance your mortgage, you’ll encounter many of the same closing costs that you had to pay when you finalized your original loan. These costs can include third-party fees, insurance, escrow and taxes. You should review your Loan Estimate and your Closing Disclosure for a complete list. Usually, these costs add up to about 2-5% of the loan amount.

In most refinancing scenarios, you’ll need to get an appraisal to gauge the market value of your home. This assessment is based on an in-person evaluation of your property conducted by a professional, and research into other nearby properties that are comparable in size and condition. The results of this appraisal will determine whether you qualify for a refinance (if you owe more than your home is worth, you might not), the interest rates your lender offers you, and if you’ll need to pay PMI (private mortgage insurance)  on your new loan.

Yes, when you refinance a primary or second home, you can use gift money (also known as gift funds) to cover all or part of your closing costs.
Typically, you’ll need to prepare a gift letter to document where the funds came from. The completed gift letter should include the donor’s information and signature. Alternatively, the gift donor can transfer the funds directly to your lender.

Just like with your original mortgage, you’ll need to provide some documentation to verify your income for a refinance. This will typically include:

• 2 years of personal tax returns
• 2 years of business tax returns (if you own more than 25% of a business)
• 2 years of W-2s or 1099s
• 2 months of bank statements
• Proof of any alimony or child support payments

Title fees cover a wide range of costs including but not limited to fees for conducting the title search and examination, notary services, and recording. You can find your title fees listed on your Loan Estimate (LE) under “Services You Can Shop For.”

Yes, absolutely! Title is one of the items listed on your Loan Estimate under the section “Services You Can Shop For.” You do not have to use your lender’s preferred title partner.

Your closing will take place in person with a mobile notary or attorney (depending on your state) at your preferred location—such as your home.

You must bring two forms of identification with you, including a government issued ID. The second form of ID can be almost anything that has your name, address, or picture that matches your government ID. If you have cash to close and plan on paying via check, please bring a check to give to your notary.

Who needs to be present: All individuals on the title need to be present at closing. Depending on your state law, there may be a need for non-borrowing individuals to be present to sign a handful of non-obligor documents as well. It’s best to check with your mortgage company or title company to confirm who should attend your closing, along with any witnesses if required by your state.

How to pay your closing costs: Payment varies depending on the title company you are using and the amount of your closing costs. You can find your cash to close amount listed on your Closing Disclosure (CD). Prior to your closing, please consult your title company on their acceptable forms of payment.

Title vesting defines who owns a certain property and thus who is liable for property taxes and other legal matters, as well as how the property can be sold. There can be multiple owners of a single property.

The title company is responsible for disbursing funds as listed on your Closing Disclosure (CD). This may include sending money to you if you are receiving funds, paying off your previous mortgage company, and making tax payments and homeowners insurance (HOI) payments, if applicable.

The title company ensures that all conditions to disburse funds are met before they can take action. Some of these conditions include approval from the lender, receiving funds from the lender, and receiving funds from you if applicable. You can find the disbursement date of your funds on the top left hand corner of your CD.

Title companies are responsible for more than just verifying ownership of a property and insuring against competing claims. They also play an important role in the closing process, namely in facilitating prepayment of costs that may come due at or after signing but before your first mortgage payment is made—things like property taxes, homeowner’s insurance, and title insurance.

Title companies are in charge of collecting this money, putting it in a designated escrow account, and then distributing it to the appropriate third party vendors and tax authorities on behalf of the buyer. If taxes come due on your property during your mortgage transaction, it qualifies as a valid lien on the property. The title company handles payment of these fees to make sure they don’t jeopardize the transaction.

Your local county website is a great resource to check for tax payment due dates, tax bills/statements, and contact information should you need to reach out to them regarding your property taxes.

Prepaid costs are payments made at closing for upcoming line items of your new home loan. They’re called “prepaid” costs because you’re paying for them before they are technically due. The most common kinds of prepaid costs are homeowners insurance, property taxes, and mortgage interest. These are paid into an escrow account to ensure that you have money to pay your bills when they become due.

A walk-through is the final time a buyer can inspect the property, prior to closing. The purpose of the walk-through is to make sure the home is in the condition you agreed to buy it in and that the seller has completed any repairs or replacements they agreed to make. It is also your last chance to ensure there are no new issues in the home.

Title is the legal concept of property ownership. States and counties require legal recording of property ownership for tax purposes. Having a record of ownership also ensures that the person holding the deed is the uncontested legal owner.

Earnest money (also known as a good faith deposit) is money that the buyer gives the seller when a sales contract is drawn to show intent to purchase. The money is deposited into a third-party account, known as escrow, and held until closing. Once contracts are signed, the earnest money becomes part of the down payment. If the contract falls through, the earnest money is either forfeited and the seller keeps it or the money has to be returned to the buyer, dependent on the contract.

Underwriting is the process of evaluating a complete and verified home loan application as well as the appraisal of the property being financed. Underwriting is the assessment of risk in a home loan and a borrower’s ability to repay it. The process ends with an approval or denial of a home loan.

Most types of insurance protect you against events that could happen in the future—but title insurance is all about protecting you from events that may have already occurred. Title insurance protects both lenders and homebuyers against competing claims which could undermine, jeopardize, or challenge established ownership of a property. Determining who needs to be listed on your title insurance varies state-by-state—in some places, your spouse may be entitled to legal ownership rights of the property. Even if your spouse is a non-borrower on the mortgage debt itself (meaning they have no financial responsibility in the transaction) you may still need to include them on the title insurance if they are listed in the vesting on the title report.

Title insurance is a type of insurance that homeowners are required to purchase in almost all refinance and purchase transactions. In the process of buying or refinancing a home, the property in question will need to undergo a title search to determine whether there are any outstanding claims, issues, or disputes regarding the ownership of the property. Before any real estate transaction can be completed, you need to obtain clean title search results with no evidence of any issues. After that process is complete you also need to secure title insurance.

There are two types of title insurance: a mandatory lender’s policy that covers the lender, and an optional (but recommended) owner’s policy that covers the homeowner. These insurance policies protect both parties from financial loss in the event that an issue or dispute predating your purchase of the property emerges. While the title search should provide reasonable confidence that there are no such issues, a title search is not 100% foolproof.

As a homeowner, your property is subject to taxes levied by the local government—the exact amount you owe depends on your location (expenses vary by state and county) and your home’s value. Property taxes are collected annually and the money is used to pay for various amenities like parks, road maintenance, schools, and police/fire services.

Property taxes can have an unexpected impact on the affordability of your monthly mortgage payment, which consists of more than just loan principal and interest costs—it also includes amortized payments for things like your homeowner’s insurance and your property taxes. In most cases your loan servicer will estimate your property taxes for the upcoming year and spread that amount over 12 payments, adding it to your monthly mortgage payment. They deposit those designated funds into an escrow account throughout the year, then make the payment on your behalf when the taxes are due.

Before making that payment, your lender will typically perform an audit on their escrow calculations and schedule a refund if they have over-collected. If funds are over-collected in prepaids and have already been distributed to the county, the county will be responsible for your refund instead.

Getting cash back is one of the most popular reasons people choose to refinance their mortgage. Qualifying borrowers can leverage their home equity to take out a loan worth more than the value of their property and receive the difference in cash. Unlike personal loans or credit cards, cash-out refinancing can actually help you save money in the long run and finance other projects or financial goals in your life (think home improvements or renovations, college tuition, etc.)

After closing on a cash-out refinance, your cash-out funds will be distributed by the title company. If your loan is for a primary residence, you’ll typically have a three-day rescission period after closing. During this time, you can technically “rescind” or cancel the transaction. Four business days after closing, your lender will be able to disburse cash-out funds to the title company. Note that for an investment property or a second home, there is no rescission period.

Trusts typically contain money or other financial assets (such as property) that are bound by specific rules for distribution to designated parties. The exact rules for distribution depend on the terms of the trust, which can vary based on the priorities and wishes of the trustor—the person who created the trust in the first place. We typically think of trusts in relation to inheritance or estate management, but they have other functions as well.

It’s possible to refinance a property that’s in a trust, but the process has a few extra steps and you’ll need the consent of the trustor. Before you can start the transactional process of refinancing, you need to temporarily transfer the title to the property out of the trust. This will allow you to close on the terms of the refinance in your name. Then you can transfer the property back into the trust after closing day. The cost for this process typically ranges between $150-$200.

A conventional mortgage loan is a home loan that’s not backed by the US government. Conventional loans are typically available through private lenders, banks, and credit unions. Some conventional loans are guaranteed by Fannie Mae and Freddie Mac. Jumbo loans, which are conventional loans that are not guaranteed by Fannie Mae and Freddie Mac, are guaranteed through private lenders.

Nonconforming loans do not meet the mortgage (LIMITS instead of ->) guidelines set by Fannie Mae and Freddie Mac. As such, they’re considered higher risk and tend to have higher interest rates than conforming loans. The most popular type of nonconforming loan is the jumbo loan, which is for a property that is more expensive than the mortgage limits set by Fannie Mae and Freddie Mac. Jumbo loans usually come with fairly stringent credit score, down payment, and debt-to-income ratio (DTI) requirements. Other types of nonconforming loans include government-backed loans, such as FHA loans, USDA loans, and VA loans. These kinds of mortgages are designed to provide affordable housing options for those who may not qualify for a conforming loan. 

Yes. To convert an FHA loan to a conventional loan you’ll need to meet the conventional loan lending criteria and complete a mortgage refinance. You’ll also need to provide documentation so the lender can verify your finances.

Many borrowers with FHA loans choose to do this so they can stop paying mortgage insurance, save on interest, or to tap into their home equity with a cash out refinance.

Yes. We offer many kinds of adjustable-rate conventional mortgage loans. If you’re looking to buy a home but plan on selling or refinancing within the introductory fixed-rate period, you may find that an adjustable-rate mortgage is a great way to save on interest payments. Keep in mind that once an adjustable-rate mortgage’s initial period is over, the interest rate adjusts and may go up (or down).

There are the 7 factors that determine your customized mortgage interest rate:

• Your credit score—typically, the higher your credit score, the lower your interest rate
• The home’s location—interest rates can vary by state or even by neighborhood
• The home’s purchase price and the amount of your loan
• Down payment amount—in general, if you put more down, you’ll get a lower interest rate
• Loan term—how long you have to repay the loan
• Interest rate type—rates vary for fixed- and adjustable-rate mortgages
• Loan type—different loans have different eligibility requirements and interest rates

Conventional loans fall into two categories each with their own borrowing limits.

Conforming (conventional) loans are subject to Fannie Mae and Freddie conforming loan limits. These limits enable qualified borrowers in most areas to get a mortgage of up to $647,200 for a single-family home. In high-cost areas in the US—such as Hawaii, San Francisco, or New York—the conforming loan limit for single-family homes can be as high as $970,800.

Jumbo loans are loans that don’t meet the Fannie Mae and Freddie Mac conforming loan limits. They’re known as non-conforming loans for that reason. Given that jumbo loans are for borrowing more money, the eligibility requirements for jumbo loans are more stringent.

We offer fixed-rate and adjustable-rate conforming loans and jumbo (non-conforming) loans. These loan types are called conventional loans.

Interest rates can change daily because the economy and the mortgage market influence them. Ideally, you’d want to lock in a rate on a conventional loan—or any loan—when interest rates are at their lowest. But even for experts, this can be hard to predict.

If you’re buying a home, the best time to lock your rate is when the seller has accepted your offer, and you find a rate you like. If you’re refinancing a mortgage, you can lock your rate as soon as you’ve applied for the refinance.

A cash-out refinance for debt consolidation lets you leverage your home equity by doing a cash-out refinance to access cash to pay off debt.

Consolidating your debt in this way is popular because the interest rates for mortgages are typically lower than interest rates charged for debts such as credit cards and personal loans.

Yes. Many homeowners use cash-out refinances to get the funds they need for a down payment on a new property or buy a new home in cash if they have enough equity.

Something to keep in mind is that expenses related to the new property will impact your debt-to-income ratio (DTI). So when you apply for the cash-out refinance, your Lender may want to see a sales contract for the new home and ask some questions about the property taxes and insurance you’re expecting to pay.

In most cases, if you’re buying a home at a price that’s relatively comparable to other homes in the area, you’ll be able to get what’s called a “conforming” loan. FHA loans and Conventional loans are both conforming loans, for example. These loans must fall within a price limit set by the Federal Housing Finance Administration (FHFA) — hence the name “conforming.” For 2022, those limits are $647,200 for most areas. If the home you’re looking to purchase exceeds the limit for your area, you won’t be able to get a conforming loan like a Conventional or FHA loan. That’s where Jumbo loans come in. Jumbo loans have different lending guidelines compared to conventional loans.

Yes. Uber Lending Group offers a wide range of options for Jumbo Loans, including single-unit primary residences as well as single- and multi-unit (up to 4-unit) second homes and commercial and investment properties.

Yes, you can. There are 3 scenarios where it makes sense to pay for points on a jumbo loan:

• When you anticipate your income will go down in the future—meaning that you wouldn’t be able to qualify for a similar mortgage.
• Your tax rate this year is much higher than what you expect in future years. (Mortgage points are tax-deductible in the year you get the mortgage, so buying points is a way to lower your taxable income when your tax rate is high.)
• It’s highly unlikely that you’ll move or refinance for a very long time. In other words, you intend to keep the jumbo loan for long enough to break even.

If you know you’ll either sell the property or refinance in the next 5 years, buying mortgage points will cost you more in the long run. In this scenario, taking a lender credit to cover some or all of your closing costs, may be a more effective way to save money.

Down payments for these loans vary based on credit score, property type, and loan amount. 

Yes, we do offer mortgages for the purchase of foreclosed and/or bank-owned properties.

Yes, These loans provide more affordable down payment alternatives, competitive rate options, and more lenient qualifying credit score standards. Because of this, FHA loans are particularly appealing to first time homebuyers and any other borrowers who have lower credit scores and/or less money set aside for down payments and closing costs.

The minimum down payment for FHA loans can be as low as 3.5%, though it varies depending on factors like credit score and occupancy. For example, if there is a co-applicant or co-borrower not residing in the property, the minimum down payment is 25%.

The Federal Housing Administration (FHA) is a government agency that promotes affordable, easy-to-qualify-for-home loans. FHA loans are only available through approved lenders. If you’re a first-time homebuyer without a substantial credit history, an FHA loan could be an attractive option. You can qualify for an FHA loan with a minimum credit score of 500 and a 3.5% down payment. FHA loans require an upfront mortgage insurance premium and, if there’s less than a 10% down payment, require mortgage insurance for the life of the loan.

A conventional mortgage (also known as a non-FHA loan) is a type of home loan that is not insured or guaranteed by the federal government. Instead, it’s backed by a private lender. Conventional loans are the most common type of home loan, making up nearly three-quarters of home loans. If you apply for a conventional loan with less than a 20% down payment, you’ll be required to pay for private mortgage insurance (PMI).

A cash-out refinance is when a mortgage is refinanced for more than the outstanding balance—converting home equity into cash. Cash-out refinancing can be a great way to free up money for an outstanding debt or to make an investment in home improvements.

This 3-page form provides you with important information, including the estimated interest rate, monthly payment, and closing costs of your loan. It’s a standard form that all lenders are required by law to provide you within three business days of submitting your application.

A Loan Estimate is important for comparing pricing across lenders, and because this document commits a lender to certain fee tolerances it reduces the risk of a bait-and-switch offer.

Points represent a percentage of your loan amount (1 point = 1%). You might choose to pay points at closing in exchange for a lower interest rate on the loan. In other words, by pre-paying some interest, you are “buying down” your rate.

Conversely, you might choose to receive a credit (or rebate) at closing to help cover other costs and fees. This would correspond to a higher interest rate on the loan.

A fixed-rate mortgage is a home loan that has a constant interest rate for the lifetime of the loan and are typically offered in 10, 15, 20, 25, and 30-year terms—giving homebuyers the security of a predictable monthly payment. Shorter-term fixed-rate loans typically carry lower interest rates and are more desirable if you’re comfortable handling a larger monthly payment.

When a lender offers you an interest rate for a mortgage, the interest rate is the cost of borrowing money, expressed as a percentage of the loan. Most consumer mortgages use simple interest which is defined as paying interest only on the principal. Some loans use compound interest which is applied to the principal and also to the accumulated interest of previous periods (this is also known as a negative amortization loan). Borrowers are often quoted interest rates in addition to annual percentage rates (APRs), which are interest rates plus lender fees and charges. Related terms: annual percentage rate (APR), principal, negative amortization

A rate lock is a guarantee from a lender that the offered interest rate with the associated points and credits for a mortgage is the rate that they will receive, so long as their financial information matches what was provided during the rate lock process. Rate locks are good for a pre-set length of time, such as 30, 45, or 60 days.

In most cases, yes. You’ll be locking in all the loan products you see when viewing “Today’s rates”. This means you can change your rate, your rate type (fixed vs. adjustable), or your loan term (15, 20, 30 yr.) up until you close. For questions on your specific options or for anything else, be sure to reach out to your Mortgage Expert.

You are free to withdraw your application and break your lock at any time. There is no fee for doing so. However, you may not be able to lock a rate for the same property for 30 days.

The first step is understanding what costs are involved. If you’re thinking more seriously about buying a home and want to find out what kind of rates you can qualify for, it only takes a few minutes to start the pre-approval process.

You’ll self-report your income and assets, and then we give you personalized rates and a pre-approval letter. It only takes a few minutes and won’t affect your credit score in any way.

Once you’re pre-approved, you can get a Loan Estimate, which gives you the estimated interest rate, monthly payment, total closing costs for the loan, and the estimated costs of taxes and insurance. It’s the best tool for comparing mortgage rates between lenders.

After your offer is accepted and you sign a purchase agreement, you will pay an earnest money deposit. This shows the seller you are serious about the transaction and typically ranges from 1-2% of the purchase price. This deposit will be applied toward your down payment.

At closing, you will be expected to pay for all remaining costs, including the down payment, third-party fees, and pre-paid costs.

Cash to close is the total amount needed to bring to the closing attorney’s office on closing day. It typically includes down payment, fees, pre-paid taxes, homeowner’s insurance, and any homeowners association fees that may be applicable. Cash to close is usually paid in the form of a wire transfer or a certified bank or cashier’s check.

Here are the third-party fees associated with a home purchase loan. This does not include other costs that might be negotiated into your purchase contract (ex: pest inspection fee).

• Appraisal fee: A home appraisal must be done by a licensed appraiser to determine the value of the property. You will get a copy of the report.
• Credit report: We need to check your credit in order to determine your creditworthiness and monthly debt obligations.
• Flood certification: We need to determine if your property is in a flood zone to ensure appropriate insurance coverage is in place.
• Lender’s title insurance: This fee ensures we’re protected if someone later makes a claim against the title of the property.
• Other title fees: You will see several miscellaneous title fees. These are charged by the title company for things such as document processing and paying the notary.
• Real estate transfer taxes: Local and state governments charge a transfer tax when real estate is sold.
• Recording fees: A fee charged by your city or county to officially record the sale.
• Settlement: This fee is paid to the settlement or escrow agent for coordinating the handling and disbursement of funds between the buyer and seller.

Owner’s title insurance: This is an optional fee. It ensures you are protected if someone later makes a claim against the title of the property.

Mortgage insurance premium (MIP) is an upfront and annual insurance premium that’s required for any Federal Housing Administration (FHA) home loan—regardless of the size of the down payment. It protects the lender in case the borrower defaults on the loan. MIP is different from private mortgage insurance (PMI) which is reserved for conventional loans.

PITI is short for Principal, Interest, Taxes, and Insurance—the four aspects of a monthly home loan payment. Principal and interest are based on the loan amount and terms of your mortgage. Taxes and insurance are directly related to the value of your property and the levies that your local government applies.

Your exact closing costs will be based on the circumstances of your loan. Closing costs include:

• Points or credits, as determined when you select your rate
• Third-party settlement fees, which are noted on all loan estimates and disclosures
• Per diem, which is pre-paid interest from the day of closing through the end of the month prior to your first payment
• Escrow payment, if applicable

Within 3 days of submitting your application, we’ll send you a loan estimate that outlines your expected closing costs. If anything changes before closing, we’ll send you an updated loan estimate.

At least 3 days prior to closing, we’ll provide a closing disclosure that gives a fully itemized list of closing costs.

The vast majority of borrowers need to pay a third-party appraisal fee which is charged around the time you lock your rate and is only refundable if you choose to withdraw before the appraisal inspection takes place. Most other fees will be paid at closing. We’ll send you a loan estimate within 3 days of submitting your application that lists the expected fees. And at least 3 days prior to closing we’ll send you a final closing disclosure that includes the exact breakdown of your closing costs.

You should continue to pay your current mortgage as scheduled until we close your new loan. We will coordinate with your current mortgage bank prior to closing to determine the final payoff amount. At least 3 days prior to closing, we’ll provide a closing disclosure that gives a fully itemized list of costs, including your loan payoff amount.

When you go through the pre-approval process with Uber Lending Group, we’ll give you an official document called a pre-approval letter. It states how much you’ll be able to borrow for the purchase of a home-based on the information you provided to us in your pre-approval application. Your final loan amount will be verified through the full underwriting process, but the pre-approval letter is still a valuable and accurate tool that will greatly increase your chances of winning an offer on the home of your choice.

Yes. Your verified letter will be marked as “Verified” and will note that we have reviewed your documentation and verified certain assets, income, and debt payments.

The amount of income we verify impacts the total loan amount we can offer you. In some cases, verified income might be lower than stated income. Investor and industry guidelines govern what income we are able to use. Here are a few examples:

• If you earn a bonus, commission, or overtime income that hasn’t been consistent over the last 2 years, we may not be able to give you credit for all of it.
• If you are reporting any self-employment losses on your tax return, they will be deducted from your qualifying income.
• If self-employment income is declining year-over-year, we have to use the lower amount.
• If you report rental income, we use the net amount, after subtracting out certain expenses you have written off on your tax return.
• If you are using income from alimony or child support, we have to document that it will be received for at least the next 3 years.

If you want additional certainty as to the purchase price you qualify for, we recommend getting a verified pre-approval letter.

You may contact your assigned Mortgage Expert by email or by phone. You may also schedule a conversation with them at your convenience.

Most mortgages usually close between 3-6 weeks after rate lock.

The exact timing depends on a few factors, including how quickly you can submit all required documents, as well as the timing of third-party services.

The most common situation that requires a longer time to close is a refinance where the borrower has a second mortgage that needs to be subordinated.

If your loan happens to have more complicated circumstances and will take longer to close, your loan officer will discuss this with you when it’s time to lock your rate, and you may agree to a longer lock period.

No. Any balance in your current escrow account at the time of new loan funding will be refunded to you by your current mortgage servicer. This typically happens within 3 weeks from the time of closing.

Close of escrow is the point in the homebuying process when everything is finalized. The funds held in escrow and the loan amount are transferred to the seller, and all outstanding third-party costs, such as taxes and HOA fees, are settled.

A co-applicant is someone whose income and credit history are put on the loan application in addition to the primary borrower. Co-applicants are a common addition when the primary borrower may not qualify for the mortgage on their own.

A loan commitment is a letter from a lender indicating your eligibility for a home loan. In essence, it is the lender’s promise to fund the loan as stated by the terms in the letter. You receive a loan commitment letter once your application has been reviewed and the underwriting process is complete.

Flood certification (also known as a flood determination and certification) is a document issued to certify whether a property is located in a flood zone based on FEMA (Federal Emergency Management Association) flood maps. Flood certification is required by your lender and determines whether special flood insurance is needed for your home.

Collateral is an asset that a lender accepts as security for a loan. In a traditional mortgage, the collateral is the home itself. If you fail to make loan payments to your lender, they have the option to repossess or claim ownership of the collateral—i.e. the property.

A contingency is a condition in a purchase contract that needs to be met by you or the seller before you’re obligated to buy the home. Contingencies protect both parties in a real estate transaction and often include clauses that allow you to back out of the sale if you’re unable to secure financing or if the home fails to pass inspections.

A mortgage note (also known as a “note”) is a document signed at closing outlining the complete terms of your new home loan. Think of it like an official “IOU.” A mortgage note states how much you are borrowing from the lender and other terms and conditions that may differ from Lender to Lender.

A qualifying ratio is a measurement that lenders use to help decide if you qualify for the loans they offer. The qualifying ratio consists of 2 subcomponents; the housing expense ratio, which is made up of monthly principal, interest, property taxes, and insurance payments (PITI); and the debt-to-income ratio (DTI). Most lenders prefer you to spend no more than 28% of your gross monthly income on PITI payments (the housing expense ratio) and spend no more than 36% of your gross monthly income paying your total debt (the debt-to-income ratio). For this reason, the qualifying ratio may be referred to as the 28/36 rule.

A termite letter is a document issued by a professional inspector to certify that the property was inspected and found to have no termites or wood-boring insects such as powder-post beetles. Pest inspections are a part of closing costs but may be paid for by either the buyer or seller.

We’ll ask for different types of documents, based on the tax form you file. We’ll need the last 2 years of your personal tax returns along with:

• Schedule C (Sole Proprietorship)
• K-1 / Form 1065 (Partnership)
• K-1 / Form 1120S (S-Corp)
• Form 1120 (C-Corp)

We’ll need the last 2 years of your personal and business tax returns along with:

• K-1 to determine the percentage of ownership
• Form 1065, if you own 25% or more of the business

We will ask for the name of your business, address, and phone number, as well as its start date and your position/title, percentage of ownership, and type of business.

The amount of income we verify impacts the total loan amount we can offer you. In some cases, verified income might be lower than stated income. Investor and industry guidelines govern what income we are able to use. Here are a few examples:

• If you earn a bonus, commission, or overtime income that hasn’t been consistent over the last 2 years, we may not be able to give you credit for all of it.
• If you are reporting any self-employment losses on your tax return, they will be deducted from your qualifying income.
• If self-employment income is declining year-over-year, we have to use the lower amount.
• If you report rental income, we use the net amount, after subtracting out certain expenses you have written off on your tax return.
• If you are using income from alimony or child support, we have to document that it will be received for at least the next 3 years.

If you want additional certainty as to the purchase price you qualify for, we recommend getting a verified pre-approval letter.

Your credit score helps lenders evaluate your ability to pay back your loans, based on your borrowing history. The higher your credit score, the better rates you’ll be able to get. This can lead to significant savings over the life of your mortgage.

When you apply online for our 3-minute basic pre-approval, we’ll ask for your social security number and do a secure “soft” credit check. This doesn’t affect your credit score in any way. We use your FICO 2 credit score from Experian. Knowing your credit score helps us make more accurate calculations about how much you can afford.

For a “hard credit check,” we use the median score from Transunion, Experian, and Equifax. This signifies to credit bureaus that you are interested in opening a new line of credit, and will have a small impact on your credit score (usually less than five points).

If you are shopping around with different lenders, credit bureaus will typically only dock your score once within a 45-day period, no matter how many mortgage lenders do a credit check. That means if you’ve already done a hard credit check with another lender but want to switch to another Lender, it won’t impact your score.

During pre-approval, we typically use the Experian FICO-II credit score from Experian. This is a soft credit check and won’t affect your credit score. If you apply with a co-borrower, we use the lower of your two scores.

When you want to continue with your loan application, with your authorization we pull your credit scores from all three major credit bureaus (Transunion, Experian, and Equifax) and use the median of the three scores received.

The Fair Isaac Corporation (FICO) generates credit scores based on information collected by three national credit reporting agencies: Experian, Equifax, and TransUnion. Typical FICO scores are in the 300–850 range. However, FICO has variations of scoring for different types of lenders. Credit scores are designed to give lenders an evaluation of your likelihood to pay your bills on time. A higher credit score indicates a more favorable borrower.

Your credit score (also known as a FICO score) is a number that reflects your financial history. Scores range from 300–850, with a high credit score indicating that you have consistently repaid debts and other loans on time.

How much money you can borrow is in part determined by the value of the collateral provided, which is your home. An appraisal is needed to determine the value of your home.

Unfortunately, no. The lender must choose the appraiser. In the event the appraiser selected by the lender is an appraiser that you know, that appraiser must disclose the nature of your relationship in the appraisal report.

The appraiser compares your home to other properties in the area and makes adjustments for differences.

Depending on the property type, an appraiser will prepare a specific report.

• Single-family homes: Uniform Residential Appraisal Report
• Condominiums: Individual Condominium Unit Appraisal Report
• Multi-family homes: Small Residential Income Property Appraisal Report

A copy of your appraisal report will be shared with you once we receive it.

A home inspection is an examination of a home’s physical condition in connection with its sale. It’s on the homebuyer to organize and pay for a home inspection after their offer has been accepted but before they sign on the dotted line. The purpose is to uncover any potential issues with the home before finalizing the purchase. There are no federal regulations governing home inspectors, and licensing requirements vary by state.

An appraisal is an unbiased estimate of your property’s fair market value by a licensed professional. It’s something that is typically required by all lenders during the mortgage process to ensure that the loan amount does not exceed the value of the home. A property’s appraisal is based on a number of factors—including location, condition, and sales of similar homes in the area.

Market value is the amount of money that a property would be sold for on the open market. This is determined by an appraiser based on its condition and comparable properties that have recently sold. Note that market value may not necessarily match the purchase price.

Your credit report will update within the first week of the month after the transfer to your subservicing partner is complete. From there, your subservicer will report your payment history (both positive and negative) to the credit bureaus at the end of each month.

Your account setup will vary depending on your loan subservicer—but we’ll make sure you have all the information you need to get started. Typically, all you need is your loan number, which you can find with your loan documents.

After your loan closes, you’ll receive an email from the Lender with your new loan number, along with instructions on how to set up your account. If you haven’t received an email, or have a problem finding your loan number, please reach out to the Servicing Support Team and we’ll help get things sorted.

Yes, purchasing points will increase your closing costs. Borrowers are basically paying an upfront fee to “buy down” the interest rate on their mortgage by a certain percentage. For some, paying more at closing makes financial sense because of the savings they will accrue over time with the lower interest rate.

Points (also known as discount points and mortgage points) are a way to lower the interest rate on your home loan by agreeing to pay more at closing. One mortgage point is equal to 1% of the mortgage amount and can lower your interest rate by up to 0.25%. The more points you pay, the lower your payment and rate will be. Points are the inverse of credits.

Yes, most lenders will require Homeowners Insurance to cover their risk in case of fire or any other calamity.

For many people, a home is the largest purchase they’ll make in their life, so it’s wise to protect it. Homeowners insurance is also a valuable financial planning tool for homeowners who own their property free and clear.

Your dwelling limit (also known as Coverage A*) covers the structure of your home and any fixed appliances attached to your home. If you were to pick up your home and shake it upside down, anything that stays falls under this coverage.

This amount is determined by the Replacement Cost Estimate of your home, which is calculated by any insurance provider that gives you a quote. This estimate only evaluates the cost of labor and materials in your area for your particular home—it does not include the land it sits on or the market value of your home. That’s why this amount may differ from your appraisal or purchase price.

Yes, to an extent.

For the dwelling itself, your limit is calculated by the insurance provider and based on the Replacement Cost Estimate of your home. If you feel that the amount is too low, it’s recommended that you request to see the RCE ordered by the insurance provider to ensure your property details are correct.

Regardless, you can still request that your insurance agent increase this amount.

You typically will not have the option to decrease your dwelling amount as the amount presented is already the minimum amount the insurance carrier is able to underwrite for.

For Other Structures (Cov B) and Personal Property (Cov C), these amounts are based on a certain percentage (depending on the carrier) of your dwelling limit. So, these can be increased, but not decreased or removed.

Finally, for Personal Liability coverage, you can increase or decrease this coverage based on your personal preference. This amount typically ranges between $100,000 to $1,000,000. We recommend speaking to a licensed insurance agent to make an informed decision about what the right liability coverage is for your unique circumstances.

You’ve probably seen these terms before and already know that your lender requires your home policy to have coverage on an RCV basis.

To understand these terms, it is also important for you to understand the concept of indemnification. The principle of any home insurance policy is to indemnify you, which means to repair or replace your home/personal belongings to the same condition as it was before (with no upgrades or downgrades).

RCV (Replacement Cost Value) is full coverage, with no depreciation based on use or lifespan. For example, if your roof is damaged from a hail storm, you will be covered for the complete replacement of a new roof, no matter how long ago your roof was installed.

ACV (Actual Cash Value) is depreciated coverage based on age and use. If your roof was installed 15 years ago and is covered on an ACV basis, then you would only be covered after a certain percentage of your roof is deducted by the insurance company.

Most home insurance policies* today offer coverage on an RCV basis, but if a portion of that policy is covered only on an ACV basis, it would be clearly outlined on the declarations page.

Condominium insurance (also known as an HO-6 insurance policy) protects the interior of a condo unit—usually defined as everything within its four walls. Since the common areas outside the condo are collectively owned by the condo association, those are covered under separate policies. Check your condo association bylaws to find more specific information regarding required insurance.

The key requirement Lenders have for homeowners insurance is that it covers the property’s replacement cost.

It largely depends on each Lender’s criteria.

The cost of homeowners insurance depends on the age and condition of your property, your home’s location, the deductible you choose, and the amount of coverage you need.

Yes, you can. When you buy a mortgage, you effectively pre-pay some of your interest. 1 mortgage point equals 1% of your total loan amount. So on a $1M loan, one point would be $10,000.

There are 3 scenarios where it makes sense to pay for points on a jumbo loan:

• When you anticipate your income will go down in the future—meaning that you wouldn’t be able to qualify for a similar mortgage.
• Your tax rate this year is much higher than what you expect in future years. (Mortgage points are tax-deductible in the year you get the mortgage, so buying points is a way to lower your taxable income when your tax rate is high.)
• It’s highly unlikely that you’ll move or refinance for a very long time. In other words, you intend to keep the jumbo loan for long enough to break even.

If you know you’ll either sell the property or refinance in the next 5 years, buying mortgage points will cost you more in the long run. In this scenario, you are taking a lender credit to cover some or all of your closing costs, which may be a more effective way to save money.

Yes, purchasing points will increase your closing costs. Borrowers who buy points are paying an upfront fee to “buy down” the interest rate on their mortgage by a certain percentage. For some, paying more at closing makes financial sense because of the savings they will accrue over time with the lower interest rate. To see personalized mortgage rates and get an understanding of whether purchasing points might be worth it for you, get pre-approved.

Points (also known as discount points and mortgage points) are a way to lower the interest rate on your home loan by agreeing to pay more at closing. One mortgage point is equal to 1% of the mortgage amount and can lower your interest rate by up to 0.25%. The more points you pay, the lower your payment and rate will be. 

Equity is the difference between the amount you owe on a property and its current market value. In other words, your equity is the amount of ownership you have in your property.

Freddie Mac is the nickname for the Federal Home Loan Mortgage Corporation, a government-sponsored entity that provides funding to smaller mortgage banks and lenders by buying their loans. The primary purpose of Freddie Mac is to ensure that there are affordable housing options and programs for low-income homebuyers, sellers, and renters.

Negative amortization describes the process that causes a loan balance to increase over time, despite regular payments being made. This occurs when your monthly payments do not cover all the interest you’ve been charged that month. The unpaid interest is added to the principal, and the following month you’ll be charged interest on the new, higher balance (the principal plus the previous month’s unpaid interest). Negative amortization may also be referred to as “NegAm” “deferred interest” or “compound interest.”

Owner-occupancy refers to the concept of living in the home that you own. It is crucial information from the lender’s point of view because if you weren’t planning to live at the home you were purchasing or refinancing, you would be classed as an absentee owner. In that instance, the home may be considered an investment property and you would not be eligible for the same types of home loan products or rates available for a primary residence.

A default is when a borrower fails to pay their mortgage. At this point, the borrower risks foreclosure, whereby the lender has the option to repossess the home.

A prepayment penalty is a fee that’s charged when you pay off your mortgage early.

A secondary home is, simply put, a vacation home. You must have sole control over the property, meaning that it cannot be a full-time rental, timeshare, or managed by a property management company. Secondary homes must be suitable for year-round occupancy. If you intend to rent out a secondary home for the majority of the year, it may be considered an investment property.

A homeowners association (HOA) oversees the development and enforcement of rules, regulations, and day-to-day operations for a community. The HOA is also responsible for maintaining community spaces. HOA fees may be collected on a monthly or annual basis.

A lien is a legal claim to an item of property. When you get a mortgage to buy a home, your lender uses the home as collateral. To do this, they place a lien on your home; this is called the first lien, the first mortgage lien, or the primary lien. If you fall behind on your loan payments and default on your mortgage, your lender has the right to repossess the home, sell it, and use the proceeds to pay off your debt.

If there is more than one lien on the home, the proceeds of the home sale will pay off the first lien holder first, the second lien holder second, and so on.

In most scenarios, a refinance will affect your monthly mortgage payment. But whether the amount goes up or down depends on your personal financial goals and the type of refinance you choose.

Rate-and-term refinance

Many homeowners choose to refinance so they can reduce their mortgage costs, either by locking in a more favorable interest rate or shortening the term of their loan and paying less interest over time. In both of these scenarios, your monthly mortgage payment will be impacted. If you lock in a lower interest rate, your monthly payments will be reduced. If you change the term of your loan (say, from 30 years to 15 years) your monthly payment amount will likely increase, but you’ll make fewer interest payments throughout the life of your loan.

Cash-out refinance

A cash-out refinance allows you to convert your home equity to cash in exchange for a higher loan balance. While you may not be changing your interest rate in this process, your monthly mortgage payment will be impacted by that increased principal amount.

Credit scores help lenders get a sense of your creditworthiness, or your ability to pay back loans based on your history as a borrower. Credit score minimums depend on the type of loan you’re trying to refinance.

Co-borrowers have their name on the property and are equally responsible for paying back the loan amount. When you refinance your home, you can add or remove co-borrowers from the mortgage and/or title.
Adding a co-borrower can be advantageous in some refinancing cases, particularly if the combined income and assets help you qualify for more competitive rates and terms. If a co-borrower has outstanding debt or other factors that could damage your chances for getting approved, you may want to consider removing them from the loan when you refinance.

Your debt-to-income ratio (DTI) measures your monthly debt compared to your monthly income, and is one of the key factors that lenders use to gauge how much mortgage you can afford. Just like with your original home loan, you’ll need to have a DTI of at least 50% for a conforming loan refinance and 43% for a jumbo loan refinance. Curious to see how much you could save by refinancing? Check out rates and see which terms you qualify for today.

When you refinance your mortgage, you are required to purchase lender’s title insurance to protect your lender for the new loan. Depending on the state you live in, you may be eligible for a lender’s policy premium discount or reissue rate. If you previously purchased owner’s title insurance when you bought your home, this will last for as long as you or your heirs own the home, and you do not need to purchase owner’s title insurance again.

A title company does a lot of work for you that might be behind the scenes! In short, a title company conducts the title search and examination, resolves any errors, issues title insurance, settlement and signing, mortgage recording, and disbursement of funds.

Underwriting is the process of evaluating a complete and verified home loan application as well as the appraisal of the property being financed. Underwriting is the assessment of risk in a home loan and a borrower’s ability to repay it. The process ends with an approval or denial of a home loan.

The differences between “title” and “deed” are nuanced but important. Title refers to the legal ownership rights to a home. Deed refers to the physical legal document that transfers the ownership of title from one person to another.

Yes, it is safe to wire money to a title company. However, it’s important to follow the instructions closely and confirm your transfer with the title company before initiating a wire transaction. There are a lot of “phishing” scams and you are strongly advised to call the title company to reconfirm all details before you wire any funds to them.

Closing costs are paid to various third parties to complete the sale of the property. Depending on the lender, these may include origination fees, credit report fees, and appraisal fees, as well as property taxes and recording fees.

Settlement costs (also known as closing costs) are the fees that the buyer and/or seller have to pay to complete the sale of the property. Depending on the lender, these may include origination fees, credit report fees, and appraisal fees, as well as property taxes and recording fees.

A home inspection is an examination of a home’s physical condition in connection with its sale. It’s on the homebuyer to organize and pay for a home inspection after their offer has been accepted but before they sign on the dotted line. The purpose is to uncover any potential issues with the home before finalizing the purchase. There are no federal regulations governing home inspectors, and licensing requirements vary by state.

A transfer tax is a real estate tax usually paid at closing to facilitate the transfer of the property deed from the seller to the buyer. Depending on where you live, you may have to pay transfer taxes at the city, county, and state level. In special circumstances—such as the inheritance of a property—you may also encounter transfer taxes at a federal level.

Your occupancy date is the day you’ll be able to move into your new home. It may not align with closing day, despite the transfer of ownership that is taking place. Some counties require the title deed to be recorded in court before the new homeowner can move in.

Title insurance (also known as owner’s title insurance) protects borrowers and lenders against financial loss from past defects or problems with the ownership of a property typically back taxes, liens, and conflicting wills. Most lenders require title insurance to protect their interest in the property until the home loan is paid off. You can also purchase borrower’s title insurance to protect yourself.

A “title” is a document that states the legal owner of a property. In the process of issuing this documentation, a title company will perform a title search to review public records and determine if there are any outstanding claims or issues related to the property in question. This search can reveal anything from forged documents, lien claims from unpaid bills, and undisclosed easements to ownership claims made by others if the seller is not the rightful owner of the property or mistakes from the previous title agency. In some cases, title search issues are easy to resolve—you can request that your loan team share the title report with third parties such as your attorney or real estate agent in order to remove paid liens or judgments that are impacting title clearance. In other cases, title issues may impact your decision to go through with the transaction.

When all is said and done, buying a home is unlike any other transaction you’ll ever experience—large sums of money are exchanged between sellers, buyers, lenders, and various third parties like attorneys, home inspectors, and real estate agents. You’ll need to make preparations to finalize everything at the closing table, and that includes delivering your payment when you sign on the dotted line.

“Cash to close” is the total amount of money you’ll owe on closing day. Keep in mind that this is different from your closing costs, which are just the fees paid to your lender when closing on your loan. Cash to close is the full amount you owe at the closing table including closing costs, down payment, and third party fees. This figure will be shared ahead of time in your Closing Disclosure, so you have a chance to get the funds together.

The total amount of your closing costs and the rules of your title company can play a part in determining the payment method you’re required to use. Secure payments can be made via a cashier’s check, certified funds, or wire transfer. Check with your loan team in advance to confirm what your options are for sending the payment. No matter which approved payment method you choose, be sure to prepare everything prior to closing so that the final transaction goes smoothly.

Prepaids refer to charges listed in Section F on your Closing Disclosure and Loan Estimate documentation. The due dates for these costs occur after your mortgage has been signed and funded but before the last day of your first payment month. They are prepaid at closing to avoid any delinquency. The charges in Section F include taxes, insurance, and prepaid interest.

If you already paid for the property taxes due within your first mortgage payment but still see an outstanding charge in Section F of your documentation, your lender can remove the redundant fees. You just need to provide documentation (such as an escrow disbursement, screenshot from the county website showing $0 balance due, or a letter from the county if digital records aren’t available) from the county/town/school district confirming that those taxes have already been paid and there is zero outstanding debt.

A cash-out refinance allows you to convert your home equity to cash in exchange for a higher loan balance. For some homeowners, tapping into equity is an effective way to finance renovations or even pay for big ticket items like college tuition or a new car. But it can also be a successful strategy for paying off outstanding debts and reducing interest costs.

If paying off your debt is a priority, you have two options. The first option is a cash out refinance in which you receive a lump sum of cash out and are responsible for taking the money and personally allocating it to the debts you want to eliminate. Let’s say you have a big credit card balance that’s subject to a high interest rate. Once you get the disbursement from your cash-out refinance, that extra liquid capital is yours to spend as you see fit. If you use it to pay off the credit card debt, you’ll most likely save more in the long run by avoiding those high interest charges.

The second option is to do a debt consolidation. In this scenario, the exact sum of the debts you’d like to pay off will be added onto your loan amount and your lender will specifically allocate the cash to each creditor you choose. You’ll essentially be consolidating that debt into your new mortgage amount and paying whatever interest rate you locked during your refinance (likely a much more competitive number that will save you money over time) on that total sum. Note that you’ll receive individual checks from your lender made out to each of these creditors for the amount needed to pay off the account. It will then be your responsibility to forward the checks to the appropriate parties.

A title company has an important role to play in finalizing any real estate transaction and managing certain aspects of the closing process. They operate as a neutral third party, representing the interests of both buyers and sellers.

One of their main functions is to verify the history and status of a property’s ownership. They do this by conducting a search of public records. A real estate transaction can’t go forward without confirmation from a title company that the current seller has the rights to transfer the title of the property to the buyer. From there the title company guarantees their findings with insurance policies, issued to both the lender and buyer.

A Jumbo loan (also known as a non-conforming loan) is a home loan that exceeds the maximum Federal Housing Administration (FHA) limit. Jumbo loans are not guaranteed by Fannie Mae or Freddie Mac, which means that the lender has no protection in the event that the borrower defaults. The maximum limit depends on the location of the home and what the conforming loan limit is for that area.

Conventional loans that meet conforming lending guidelines are guaranteed by Fannie Mae and Freddie Mac. These government sponsored enterprises set the lending criteria for conforming loans to encourage homebuyers to buy homes they can comfortably afford. Homebuyers with loans that conform to their lending guidelines are less likely to default on their loans and experience foreclosures.

The Federal Housing Finance Authority (FHFA) supervises and regulates Fannie Mae and Freddie Mac to ensure their actions help stabilize and provide affordability to the housing market.

Yes. Qualifying homebuyers can finance rent-to-own (also known as lease-to-own) properties with conventional conforming loans.

If you’ve been paying above market price rent, you may be able to apply some of your past rent payments toward your down payment. To do so, you may need to provide the following (in addition to meeting the standard loan qualifying criteria):

• A copy of the rental/purchase agreement that clearly states the monthly rent amount, the terms of the lease, and proof of a minimum original (lease term) of at least 12 months.
• Proof of 12 months rental payments.
• Documentation confirming that the rent is market value, as determined by the property appraisal.

Yes and no. Conventional loans and conforming loans are considered by many to be the same type of loan because there is overlap between them. All conforming loans are conventional loans, but not all conventional loans are conforming loans.

Conventional loans are defined by the type of lender who offers them. Banks, credit unions, and mortgage companies offer conventional loans.

Conforming loans are defined by their lending criteria. Fannie Mae and Freddie Mac purchase conforming loans from lenders to stabilize the mortgage market and make more cash available for lenders to offer loans to Americans. Because of this, Fannie and Freddie set lending criteria and conforming loan limits. These limits help prevent homeowners from borrowing more than they’ll comfortably be able to pay back.

The first step to apply for a loan with us doesn’t require any documentation. You’ll simply need to complete a quick pre-approval form by answering some questions about your financial situation and we’ll run a soft credit check which doesn’t impact your credit score.

We offer fixed-rate conventional loans with 10, 20, and 30 year terms. These loans are ideal if you’re looking for a loan with predictable monthly payments as the interest rate remains the same for the loan’s full term.

We also offer adjustable-rate mortgages (ARMs).  ARMs are unique because their interest rates are fixed for the first few years of the loan, then the rate adjusts based on market conditions. These mortgages are worth considering if you only need the loan for a few years.

If the deposit on your home is less than 20% of the purchase price, private mortgage insurance (PMI) will be added to your monthly mortgage costs by your lender.

PMI is typically required for borrowers who’ve made smaller down payments to offset the lender’s financial risk. This is so the lender can offer affordable mortgage options to people who don’t have the cash to make a traditional 20% down payment.

Once your home equity reaches 22%, your PMI payments will automatically stop. To stop PMI payments sooner, when your home equity reaches 20%, simply ask your lender to stop the PMI payments.

You can get a conventional mortgage loan from banks, credit unions, and mortgage companies if you meet their lending guidelines.

Once your home equity reaches 22%, your PMI payments will automatically stop. To stop PMI payments sooner, when your home equity reaches 20%, simply ask your lender to stop the PMI payments.

No, the cash from a cash-out refinance isn’t considered taxable income because the IRS knows you have to pay it back. When you unlock your home equity by doing a cash-out refinance, your mortgage balance goes up. So given that any cash you receive as a result of the cash-out refinance needs to be paid back to your lender, it isn’t considered taxable income.

However, any interest you are charged on the new mortgage (after you’ve done the cash-out refinance) is considered tax-deductible.

Here’s the maximum cash-out amount formula:

Your property value x LTV limit – current mortgage balance = the maximum you can cash out

The LTV limit (known as the loan-to-value ratio limit) for a single-family property is 80%. That means you need to keep a minimum of 20% equity in your home when you do a cash-out refinance. However, the type of property and the number of units the property has can reduce the LTV limit to as low as 70%, which may increase the amount of home equity you need to retain while doing the cash-out.

For example, Lisa has a primary residence single-family home with a property value of $300,000 and a current mortgage balance of $80,000. Her calculations would look like this: $300,000 x 80% – $80,000 ($240,000) – $80,000 = $160,000 The maximum amount Lisa can cash out is $160,000.

Pre-approval for a Jumbo Loan is just as fast and easy as it is with any other type of loan. Keep in mind, there are some differences between Jumbo and conforming loans when it comes to the full underwriting and approval process — for example, if the purchase price is above $1.5M you may be required to get two appraisals on the home.

As a general rule, yes. However, whether conforming loan rates are lower or higher than Jumbo loans depends on the type of loan, the borrower’s unique financial situation, the type of property the mortgage is for, and the property’s zip code. While the size of jumbo loans increases their risk to the lender—which would typically suggest a higher interest rate—some borrowers with good credit and sound financial reserves may be offered a lower interest rate.

If you’re planning to refinance or sell the property within the first 10 years, an adjustable-rate mortgage (ARM) could help you save on interest payments. ARMs typically offer lower interest rates during the introductory 5–10 year fixed rate period than a traditional fixed-rate mortgage.

Debt to income ratio (DTI) is a measure of your monthly debt (student loans, car loans, credit card bills) divided by your gross monthly income (how much money you earn before taxes). DTI is one of the factors that determines what kinds of financing options are available to you, as it helps lenders understand whether you’ll be able to manage a mortgage payment in the context of other debt obligations.